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Review By Dilip Davda on June 20, 2017
Pushpanjali Realms & Infratech Ltd (PRIL) is a real estate development company focusing primarily on construction and development of residential projects. Its current portfolio of project covers catering to customers across the income groups. Currently the company is focusing on opportunities to build a brand in real estate sector. It generally enters in to joint ventures with developments of such projects. It is currently doing infra projects in Uttarakhand and has established a successful track record.
To part finance its working capital and general corporate funds need, the company is coming out with a maiden IPO of 2646000 equity share of Rs. 10 each with a fixed price of Rs. 55 per share to mobilize Rs.14.55 crore. Issue opens for subscription on 27.06.17 and will close on 30.06.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After issuing equity at par on incorporation, it issued bonus shares in the ratio of 40 shares for every 1 share held in January 2016. Thereafter it made two rights issues with at par issue in February 2016 and at a price of Rs. 20 per share in February 2017. Post IPO its current paid up equity capital of Rs. 7.37 crore will stand enhanced to Rs. 10.01 crore.
On performance front, for last three fiscals it has posted turnover/net profits of Rs. 1.18 cr. / Rs. 0.02 cr. (FY14), Rs. 13.46 cr. / Rs. 0.43 cr. (FY15) and Rs. 22.15 cr. / Rs. 1.39 cr. (FY16). For nine months ended on 31.12.16 of the current fiscal, it has posted net profit of Rs. 1.18 crore on a turnover of Rs. 18.48 cr. If we annualize the latest earnings and attribute it on fully diluted equity post IPO then asking price is at a P/E of around 35 plus against peers trading at an average P/E of 19 plus making this issue a costly bet. Its average RoNW for last three fiscals is 52.96%.
On merchant banker’s front, this is the 27th mandate from its stable that have shown mixed trends with average returns in most of the cases.
Conclusion: Only risk savvy cash surplus investors may consider moderate investment for long term in this aggressively priced offer.
Review By Dilip Davda on June 20, 2017
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Pushpanjali Realms & Infratech Ltd offers an early investment opportunity in Pushpanjali Realms & Infratech Ltd. A stock market investor can buy Pushpanjali Realms IPO shares by applying in IPO before Pushpanjali Realms & Infratech Ltd shares get listed at the stock exchanges. An investor could invest in Pushpanjali Realms IPO for short term listing gain or a long term.
Read the Pushpanjali Realms IPO recommendations by the leading analyst and leading stock brokers.
Pushpanjali Realms IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Pushpanjali Realms IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Pushpanjali Realms IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Pushpanjali Realms IPO.
The Pushpanjali Realms IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Pushpanjali Realms IPO allotment status to check.
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